Tag: CaixaBank

CaixaBank Chooses Six Funds For “Flanders Project” Final Bidding

28/04/2014 – Expansion

CaixaBank speeds up the largest loan sale found presently in Spain. The financial entity chaired by Isidro Fainé has selected finalists that will take part in the bidding for €1.1 billion worth of unpaid loans to SMEs, embraced by the “Flanders Project“.

According to financial sources with knowledge of the operation, there are between 4 and 6 funds, supposedly Cerberus, Oaktree, D. E. Shaw, Perry Capital, Castlelake and a Deutsche Bank fund.

The sale evoked huge interest of funds, as so did the credit portfolio transactions concluded earlier this year by Catalunya Banc (€1.35 billion worth) and by Bankia (€713 million).

The staggering interest also pushes the price up. In case of the Catalunya Banc´s sale, Aiqon Capital paid 5% of the total portfolio value, while usually it is 4% for this sort of asset.

The “Flanders Project” consists of 33.000 defaulting credits of SMEs and big companies declared as insolvent (55%), a part with properties as a collateral. Most of them are scattered around Madrid, Catalonia and Andalusia. The operation involves four sub-portfolios named Brujas, Amberes, Gante and Lovaina. Around 67% of all loans are in trial process to recover due amounts.

When it comes to alleged purchasers, Oaktree is said to vie for only one sub-portfolio. Cerberus acquired Bankia Habitat last year, while Perry Capital bought two portolios of Liberbank and Popular. D. E. Shaw has not purchased any property in Spain so far. Deutsche Bank is not a very habitual buyer of non-performing loans and Castlelake has recently hired Sareb´s director, Francisco Jonet.

 

Original article: Expansión (by Jorge Zuloaga)

Translation: AURA REE

Servihabitat Hires Two New Executives: Rato & Cortina

19/03/2014 – Expansion

CaixaBank is soon going to welcome Amparo Moraleda in its managing board, where she will replace Susana Gallardo. At the moment, Moraleda chairs Sistemas y Servicios de Iluminación Eficiente (SSIE). Additionally, she is a member of several listed companies´administrations, such as Corporación Alba, Meliá Hoteles or Alstom.

Moreover, Servihabitat Servicios Inmobiliarios (the bank´s asset managing firm) has hired Rodrigo Rato and Alfonso Cortina as directors in newly formed administrative board. The ex-director of Bankia and the former chairman of Repsol will enter Servihabitat on the motion of TPG that bought 51% of the real estate company last summer.

The purchase contract granted four seats in the managing board to the U.S. fund and three to CaixaBank. The eighth, chief executive, is taken by Julián Cabanillas.

When it comes to TPG, apart from Rata and Cortina, two other executives have been incorporated in the fund: Michael Muscolino (a partner from London) and Fernando Magnet O’Dogherty.

The three seats in CaixaBank are taken by Antonio Cayuela, Ramón Noguera (responsible for Building Center) and Lluis Vendrell. (…).

Original article: Expansión (S. Saborit/J. Orihuel)

Translation: AURA REE

BBVA, CaixaBank & Popular Inject 6.000 Million Euros into Their Real Estate Companies

The main banks mentioned above destined 5.926 million Euros last year to bailout the companies that manage their property. The real estate sector has been acutely affected by the recession and the firms tied up with financial insititutions have not been an exception. Fortunately, they can count on banks´support (…). Most of the banks sold their branches to international funds, but still hold the assets.

BBVA´s contribution is the greatest one. At the end of 2013, the bank subscribed capital increase of 4.000 million Euros for Anida Grupo Inmobiliario holding and then transferred 4.000 million Euros to Anida Operaciones Singulares, its property managing company. With the money received Anida settles the debt it had at BBVA for the outstanding credits equal to the amount obtained.

The Negative Funds

By the injection BBVA removed the negative capital of Anida reaching 3.100 million Euros at the end of 2013, (…).

The law excludes the real estate companies from the general corporative obligations to cover the gap in its own capital so that they could avoid dessolution. Due to the real estate crisis the exception was being renewed every year to dogde the bankruptcy of practically all of the companies from this sector.

BBVA has not granted the control over its real estate property to any fund.

At the beginning of 2013 CaixaBank fueled its real estate company BuildingCenter with 1.250 millon Euros of capital, extending it to 2.000  millions, according to the  mercantile registry data.

Last year CaixaBank conducted the inverse operation of ServiHabitat, owning all its property and which entered into a merger with Criteria Caixa Holding at the end of 2013. Before the fusion, in May, ServiHabitat reduced its capital by 2.072 millon Euros to 1.381 millions to absorb losses from previous excercises. CaixaBank hired the U.S. fund TGP to manage its property portfolio in ServiHabitat.

Banco Popular also supported its real estate subsidary Aliseda, not with money though. The entity conducted three transactions that aumented the capital by 577 millon Euros (total of 878 millons to cotrast with previous 302 millions) and involved property of other entities from the group (…). Popular bond itself with Värde Partners and Kennedy Wilson that manage its real estate assets.

At the moment Sabadell has not got any property manager. The bank created Solvia Activos in May last year and transferred assets worth 100 million Euros to it.

Santander in turn, associated with Apollo, began the year 2013 with his homework done as it injected 1.070 millon Euros into Altamira at the end of 2012 which deed allowed its capital expand to 1.200 million Euros.

Source: Expansión

Santander, CaixaBank, BBVA and Bankia To Refinance 50% of FCC´s Macro Loans

By February 28th FCC must covince the creditors that yet have not agreed on refinancing of the 4.600 million Euro debt, divided among the credits granted in 2013 and this year. The debt refinancing is said to be one of the greatest Spanish company financial restructuring in 2014, in which the most important participants are Santander, CaixaBank, BBVA and Bankia. In their hands lays refinancing of 2.300 milllions, a half of the debt. The construction company advised by Morgan Stanley wishes to restructure the debt in order to extend its maturity by 2017.

Santander appears as the main creditor with 850 million Euros, followed by CaixaBank with 600 millions. BBVA with 500 millions and Bankia with 355 millions also top the list of the principal creditors of FCC. In case of the two lattest, the financial relationship with the company applies doubly as the two entites have just finalized financing Esther Koplowitz´s personal debt associated with 50% of FCC, about 900 million Euros with maturity prolonged by 2018.

Last week FCC informed CNMV about 96% backup on the part of creditors. (…) By December Barclays (100 millons), RBS (70 millons), Société Générale (182 millons), BNP (178 millons) and BEI (70 millons) accepted the syndicated credit conditions.

Among the reasons alleged by the banks there is the requirement of general agreement on an extension of the deadline or the revision, a series of compromises the creditor makes with the debtor. (…) Also, foreign institutions need the risk assessment committees to approve their participation, which usually delays the process.

Legal Homologation

In any case, the unanimity is no more the suspension condition in the refinancing process if a company is supported by the majority of banking institutions. Thanks to the legal homologation the enterprises know that they can turn to the mercantile judge and claim an agreement when some of the entities not exceeding 25% of the liabilities reject the conditions approved by the rest. (…).

The refinancing appears few months after El Corte Inglés have succesfully closed another historical transaction involving almost 5.000 million Euros. As the department store company did, FCC is planning to turn to international debt market.

Source: Expansión

La Caixa Completes Merger of Criteria & ServiHabitat

La Caixa accomplished the process of joining Criteria CaixaHolding and ServiHabitat XXI. The corporate transaction has been already registered in the Mercantile Registry of Barcelona. It allows to unify the corporative structure of the savings bank having two main branches: 55,72% of CaixaBank and a shareholding in Criteria and Obra Social (Welfare Projects).

As EXPANSIÓN informed on the November 2oth, the financial group chaired by Isidro Fainé approved the fusion of Criteria and ServiHabitat aiming at improvement of its efficiency and cut in the corporate costs.

The transaction was of reverse merger nature, as Criteria has been overtaken by the real estate company ServiHabitat. Before it had served as its subsidary.

Once the operation completed, ServiHabitat changed its name to Criteria CaixaHolding. The new company moved its premises to the towers on the Avenida Diagonal Street, belonging to La Caixa. (…)

The reverse merger resulted in revocation of all the Administrative Board of ServiHabitat which has been chaired by Francisco Bellavista. (…) There has been only one change made: Gonzalo Gortazar, the CEO of CaixaBank stepped down giving his position to Isabel Estapé.

Isidro Fainé will maintain the chairmanship of Criteria and Juan María Nin will become the vice-chairman. Together with Estapé, the board will consist of 17 other members (…).

Criteria manages the assets that La Caixa holds in Abertis (19,25%), Gas Natural (34,62%), Agbar (24%), Mediterránea Beach & Golf (100%), Saba (50,1%) and Vithas Sanidad (20%); moreover, the bank has got a minor holding in Colonial. Additionally, the new Criteria possesses all the real estate assets which belonged to ServiHabitat. La Caixa transferred to the company all the houses and plots awarded by February 2011, before the creation of CaixaBank.

By September 30th, Criteria has holded assets worth 8.782 million Euros. On the part of ServiHabitat, the assets were valued at 3.519  million Euros, according to the merger project balance. The bank debt of ServiHabitat – with CaixaBank – raises up to  2.364  million Euros. ServiHabitat possessed 447.744 square meters of property with the gross book value of 3.393 million Euros.

The merger between the companies was arranged when La Caixa had sold to CaixaBank the firm Servihabitat Gestión de Inmuebles (SGI). (…) In parrarel to this step, CaixaBank sold in September 51% of SGI to the U.S. fund TPG.

Source: Expansión

BBVA, CaixaBank and Popular Redeem 27.800 Million Euros in Mortgage Agreements

The year 2013 has been much more propitious for the financial institutions due to the return of the investors´trust in the Spanish market.

On the other hand, the deleveraging process going on within the sector reduces in a way the need of financing. As a consequence, the entities depend less and less on the financing from the European Central Bank (BCE). The three banks have decided to redeem their titles used as guarantors at auctions of the monetary financial institution, mainly mortgage agreements.

Since April BBVA, CaixaBank and Popular have redeemed debt of this type for the amount of 27.840 million Euros, according to the data provided by Expansión, made available by CNMV.

Out of the three banks, CaixaBank is the one which has been the most active selling for 12.700 million Euros, compared to BBVA with 9.840 millon and Popular with 5.300 million gains.

Benefits

What is the benefit that the banks derive from sales of the mortgage agreements? The entities get rid of this kind of assets committed to their mortgage portfolios. Increase in such second line of liquidity or the policy to maintain own mortgage agreements in balance in order to enter the auctions of BCE, reduces the margin of issuing the debt among the investors.

The Mortgage Law restricts the issue of the loan agreements substituting for the mortgage portfolio possessed by a bank. (…)

The movement burgeoned when some entities had decided to adjust the value of their portfolios in regard to the postcrisis situation on the real estate market.

So did BBVA, pushing the value of the real estate properties giving coverage to its mortgages  down. (…)

All the changes make sense while the institutions depend less on the financing from the BCE. In Spain, the long term debt has been reduced and concentrated in 2 auctions in 3 years, also known as Ltro, between  320.567 and 209.769 in 12 months, according to the data of the Bank of Spain. (…)

Source: Expansión

Sareb & Caixabank Reduce by 71 Million Euros Price of Assets Preceding from The Bank of Valencia

Sareb and Caixabank gave the Bank of Valencia a 71 million Euro discount at the sale of assets. The assets value, once modified, fell down to 1.889,9 millons.

Sareb informed the Spanish National Stock Market Commission (CNMV) that last Friday the quoted contract was corrected. Caixabank has been subrogated in all the rights and obligations of the Bank of Valencia for universal succession by virtue of the fusion by absorption of the first by the second.

The total amount of the assets in correction rised up to 71,7 million Euros. (…) The amount of the assets preceding from the Bank of Valencia, once conducted with the present correction, rises up to 1.889,9 million Euros.

Sareb also points out that last Friday the correction via partial early amortization was made  effective, on the part of Sareb, senior bonds: 215 certified as 2012-1, 322 as 2012-2 and 179 as 2012-3. (…)

The paid coupon calculation was conducted in cash for each series of the bonds and interest rate of the payment was calculated to compensate Sareb the disbursement made.

Source: EuropaPress

Bonomi Sells 49.9% of Port Aventura to KKR

Investindustrial, the group of the Italian family Bonomi, has sold 49.9% of Port Aventura to the venture-capital company KKR. Last year, the Italian group paid 105 million Euros to CaixaBank for its share. According to sources close to the transaction, now it has sold for more than mentioned amount. Bonomi will hold the remaining 50.1% of the capital.

Port Aventura, situated in Vila Seca and Salou (Tarragona), earned 180 millions last year and received 3.8 million visitors. Apart from being an amusement park, the entertainment complex is supported by four hotels (offering 2.000 rooms in total), a convention center and three golfcourses.

The entrance of the venture-capital company followed the announcement of the construction of six  hotels in BCN World, a complex adjoining Port Aventura, even though not all of them will be raised in the first stage. Thus, the new partner will strengthen the shareholding before an investment that could oscilate around 140 and 170 million Euros.

(…) One of the company´s goals is to attract more foreign visitors, both to the theme park and its area of events and conventions. Presently, 45% of the visitors come from outside of Spain and the company aspires to 70%. This way the company could decrease its dependency on the Spanish market and deseasonalise the activity of the park.

According to Port Aventura, “Investindustrial has spotted potential alliances with the leader brands in sector of entertainment on international level that will implement in the forthcoming years with help of KKR, which will contribute its global network in tourism and entertainment sector.” Among other companies in Spain, KKR possesses 18.2% of Saba.

The transaction has been conducted with funding of CaixaBank and with advisory of JP Morgan, AZ Capital, KPMG, Uría Menéndez and Lazard.

Since Investindustrial incorporated into the shareholding of Port Aventura in 2009, there have been carried out investments of 100 million Euros. (…).

Next year, Port Aventura will hold daily shows of Cirque du Soleil during two months, which might become a permament attraction in the future.

The BCN World project is awaiting the Catalan Parlament´s approvement on tax reduction supposed to pass down from 20-50% to 10%.

Source: Expansión

CaixaBank sells its real estate división Servihabitat to TPG for 185 million Euros.

Another real estate company from a great bank ends up in the hands of the venture capital firm. As done by CaixaCatalunya in August and Bankia this week, La Caixa has reached an agreement with Texas Pacific Group (TPG) to sell 51% of the capital of Servihabitat Gestión Inmobiliaria, the company that had gathered most of the assets awarded after the non-payments in the construction business.

The agreed price is 185 million Euros, as the company is valued at 370 million Euros. This is therefore a price that doubles the one obtained by Bankia when getting rid of its bad bank (90 million Euros) and multiplies by nearly five the 40 million Euros obtained by the other Catalan bank in the hands of the State.

Nevertheless, this is a fairly lower price than the one initially foreseen, when La Caixa put its subsidiary on the market, as it planned to receive 200 million Euros. In any case, this is a positive operation for the group led by Isidro Fainé and Juan María Nin, which will have millionaire earnings.

The agreement between La Caixa and TPG transfers the management of the real estate services for a period of ten years, included those of the real estate company Building Center, the subsidiary where CaixaBank accumulates all assignments in payment that entered its balance sheet after going public. The bank with headquarters in Barcelona will liberate resources for the sale and rental of homes, the installments linked to properties, the foreclosures and the recovery.

Texas Pacific Group, a fund of 54.000 million dollars advised in Spain by a former executive of Bankia, Fernando Magnet, has won Bridgepoint, which has been fighting until the last moment, on the bid for Servihabitat.

Other funds such as Fortress and Starwood, also participated in the auction, as they were interested in a very interesting recurring business as the flow of operations is guaranteed, regardless of Servihabitat or Building Center carrying out operations with capital losses, as usually happens in the current market situation.

The sale takes place after La Caixa segregated the company Servihabitat Gestión from the group Servihabitat at the beginning of this year, a subsidiary where the savings bank had located all the real estate assets included in its balance sheet before CaixaBank went public. This division changed Servihabitat into its own bad bank, where it gathered awarded properties and land in order to be able to place the financial business on the market without having to cope with the burden of the construction business.

La Caixa has not been able to finalize the sale of 12.000 properties, an operation that ran parallel with the Servihabitat one. The decision was taken after receiving binding offers for 800 million Euros, half of the valuation made by the bank on that portfolio of properties. (…)

La Caixa sells its real estate jewel in Madrid: the building Serrano 60.

La Caixa, through its real estate subsidiary Servihabitat, has sold the building of CaixaBank located on number 60, Serrano Street in Madrid to the British fund Meyer Bergma, specialized in the management of real estate investments. The economic amount of the operation has not been provided. According to the information published by Expansión when the building was put on sale, the starting price would be 60 million Euros.

The building, located in the Golden Mile of Madrid, in the Salamanca district, has a total built up surface of 8105 square meters – divided into ground floor and seven floors, as well as four other floors below the surface with 70 parking spaces.

One of the main attraction points of the building is the trade premises of 2500 square meters, at street level. Only around 4% of the trade premises in the area have surfaces over 1000 square meters. Currently, Serrano 60 is unoccupied except for the ground floor where La Caixa has an office.

The plans of the British fund Meyer Bergman will mean the reconfiguration and renovation of the ground floor in order to use it as trade premises, in view of the lack of such spaces in one of the areas in Madrid with a highest concentration of luxury and fashion brands. “This operation shows the growing interest of international investors in the Spanish real estate sector and mainly in quality assets”, La Caixa declares in a statement.

Meyer Bergman is a private firm for the management of real estate investments with headquarters in London, United Kingdom. The company focuses its investment strategy in real estate assets with a high potential of revaluation in the main markets in Europe, through a wide network and managed actively in order to generate attractive profits.

The current investment priorities of Meyer Bergman are focused on the acquisition of well placed assets in the United Kingdom, Germany, France, the Nordic countries, Poland and the Czech Republic. The value of a common transaction ranges between  30 and 300 million Euros.

Source: El Mundo